Ch3 Generating and Exploiting New Entries

A  They are used to decrease the risk of downside loss related to new entry.

B  They cannot enhance the performance of a firm.

C  They do not represent substitutes for individual learning.

D  They are normally rare and valuable.

A  When communication within an organization occurs through formal channels only. When a company has to deal with the costs associated with learning

B  When a company has to deal with the costs associated with learning. When there is some overlap or gaps in responsibilities

C  When communication within an organization occurs through formal channels only. When particular roles are clearly defined and demarcated by a firm

D  When there is some overlap or gaps in responsibilities. When particular roles are clearly defined and demarcated by a firm

A  Indicator

B  Scope

C  Limit

D  Total

A  indicator

B  scope

C  risk

D  limit

A  duplicating

B  imitation

C  forecasting

D  shadowing

A  It does not involve the erection of barriers to prevent other firms from entering a market.

B  It is typically considered a disadvantage for first movers.

C  It does not provide entrepreneurs with a period of limited competition.

D  It provides first movers with the chance of setting their product as the industry standard.

A  It depends on the type of entrepreneurial risk taken.

B  It is not a choice about which customer groups to serve and how to serve them.

C  It refers to the probability, and magnitude, of downside loss.

D  It does not range from a narrow- to a broad-scope strategy.

A  When the entrepreneur adopts market scope strategies. When the firm copies the practices of other firms

B  When the entrepreneur is uncertain over market demand. When the firm copies the practices of other firms

C  When there is a technological development. When the entrepreneur is uncertain over market demand

D  When the entrepreneur adopts market scope strategies. When there is a technological development

A  It can be present even when a new firm has a superior product when compared with its competition.

B  Potential customers’ uncertainty do not stem from the broader context in which a product is to be used.

C  It is typically not present when a product or service is highly innovative.

D  The problem of customer uncertainty can only be eliminated by offering informational advertising.

A  point success factors

B  key success factors

C  lead point indicator

D  window of opportunity

A  elapsed time

B  lead time

C  end time

D  start time

A  can prevent the changes that occur in an industry

B  will not be able to select the most attractive segment of the market

C  can learn by trial and error over time

D  will not face any competitive rivalry

A  neglect for customers

B  division for customers

C  uncertainty for customers

D  deprived for customers

A  profitability

B  key resources

C  key success factors

D  revenue

A  They are able to reduce costs as they can spread their fixed costs because of economies of scale.. They are able to replicate the products of their competitors.

B  They are able to prosper under every circumstances as they are the first movers. They experience less competitive rivalry than do other firms.

C  They are able to prosper under every circumstances as they are the first movers. They are able to replicate the products of their competitors.

D  They experience less competitive rivalry than do other firms. They are able to reduce costs as they can spread their fixed costs because of economies of scale.

A  enter the market even if he or she has no market or technological knowledge

B  wait and see if another entrepreneur experiences success in the same market

C  always gather more information before entering the market

D  quickly exploit the opportunity with his or her product or idea

A  entrepreneurial

B  creative

C  managerial

D  innovative

A  they are not the inputs into a firm’s production process

B  a firm’s resources are only comprised of its machinery and capital

C  in order to truly understand the value of a resource, a firm must consider the individual rather than the bundle

D  a firm’s resources should be valuable, rare, and inimitable if it seeks to outperform its competition

A  whether an opportunity actually exists or not

B  the availability of an opportunity in a new market

C  the amount of time the entrepreneur spends searching for information

D  whether the entrepreneur believes that he or she can create the market demand

A  door of chances

B  window of opportunity

C  stage of innovation

D  bundle of resources

A  Wealth

B  Power

C  Capital

D  Knowledge

A  Structure

B  Resources

C  Machines

D  Manpower

A  False

B  True

A  True

B  False

A  exclusion

B  negligence

C  commission

D  omission

A  always gather more information before entering the market

B  quickly exploit the opportunity with his or her product or idea

C  enter the market even if he or she has no market or technological knowledge

D  wait and see if another entrepreneur experiences success in the same market

A  entrepreneurial

B  exceptional

C  managerial

D  leading

A  Rare

B  Inimitable

C  Valuable

A  Valuable

B  Rare

C  Inimitable

A  Rare

B  Valuable

C  Inimitable

A  new innovation

B  new trial

C  top entry

D  new entry